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  • 18 hours ago
South Asia continues to show steady economic progress even as energy shocks and adverse weather conditions pose significant risks. Regional policies focused on these vulnerabilities are crucial to maintaining this trajectory, according to the World Bank's lead economist.

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00:00South Asia's economy is now expected to grow 6.9% in 2026, beating earlier forecasts by 60 basis
00:07points. That resilience comes despite a severe energy shock and persistent inflation, which could
00:13still threaten the outlook. The World Bank says strong government support. Steady remittances
00:18and solid domestic demand have kept growth on track even as oil prices remain high.
00:24India, the region's largest economy, is forecast to expand 7.1% next year, up from 6.6% predicted
00:32in June but well below last year's 8.6%. Inflation is expected to stay elevated into 2027, with
00:40effects on growth possibly delayed by up to 18 months, according to World Bank economist
00:45Franziska Onsorga. Meanwhile, a strong El Nino weather event could disrupt agriculture and
00:51rural demand, adding to risks. The bank also highlights AI adoption as a key factor to
00:57sustain growth, noting South Asia is catching up fast but still lags advanced economies.
01:03Disclosure. This video contains stock footage and content created or enhanced using AI-assisted
01:08tools.

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